CoreCivic (CXW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 25.8% year-over-year to $614.7 million, with net income up 51% to $37.9 million and diluted EPS up 65.2% to $0.38, driven by higher ICE populations, new contracts, and the Farmville acquisition.

• Adjusted EPS was $0.40, up 74% year-over-year, and normalized FFO per share rose 44% to $0.65.

• Five previously idle facilities were activated to meet ICE demand, and the Farmville Detention Center was acquired and integrated.

• Clinical Solutions Pharmacy (CSP) was acquired for $148 million, expanding into correctional pharmacy services.

• Q1 results exceeded analyst estimates for adjusted EPS and EBITDA, and full-year guidance was raised despite a temporary ICE population dip.

Financial highlights

• Total revenue for Q1 2026 was $614.7 million, up from $488.6 million in Q1 2025.

• Adjusted EBITDA reached $110.1 million, up 36% year-over-year, and operating income before taxes was $52.3 million.

• Normalized FFO per share was $0.65, up 44% year-over-year; AFFO per share increased to $0.70 from $0.48.

• Operating margin for safety and community facilities was 24%; average revenue per compensated man-day increased 13.5% to $116.53.

• Share repurchases totaled 2.3 million shares for $44.7 million in Q1; 28.1 million shares repurchased since 2022.

Outlook and guidance

• 2026 adjusted EPS guidance raised to $1.53–$1.63; adjusted EBITDA guidance increased to $453.8M–$461.8M.

• Full-year net income guidance: $147.8–$157.8 million; AFFO per diluted share guidance: $2.56–$2.70.

• Guidance reflects Q1 outperformance, CSP acquisition, Midwest Regional Reception Center activation, and lower ICE populations.

• Maintenance CapEx for 2026 projected at $60M–$70M, with total CapEx at $115–$130M.

• ICE population growth is expected to resume in the second half of 2026; guidance assumes no new unannounced contracts.